Meta's AI Innovations: Transforming Advertising and Marketing Dynamics

Meta's new video ad feature could revolutionize advertising by simplifying creative processes and attracting more advertisers.

### Meta's Innovations and Amazon's Prime Day: Shaping Advertising and Consumer Behavior
* 📈 Meta's announcement of the Mehta Gen video feature aims to **democratize video creation**, addressing the primary barrier to advertising, which is **creativity**, and potentially attracting **more ad dollars from SMBs as well as Fortune 1000 brands**.
* 🎥 The impressive growth rates show that between 2023 and 2024, brand traffic on Meta grew by **10%**, while TikTok experienced a **190% increase**, highlighting the need for Meta to **invest further in AI** to maintain its competitive edge.
* 💡 Meta's new feature allows advertisers to convert static images into video ads, which could **significantly streamline the creative process**, potentially **reducing the number of marketers needed** in organizations.
* ⚖ However, major advertisers still harbor concerns regarding **copyright violations and data privacy**, necessitating Meta's efforts to **address these issues to gain their trust**.
* 🛍 Shifting focus to Amazon's Prime Day, this event has become a **significant global moment** for moving excess supply and providing value to consumers, particularly in 2024.
* 📉 This year, McMath observed a **20% decline in basket sizes**, reflecting consumer pushback against recent price hikes by mass consumer product companies.
* 💸 The outcome of Amazon Prime Day will reveal **consumer spending willingness** amid inflation and price increases, while the Fed's potential **interest rate cuts** could foster **optimism for the upcoming holiday season**.

Rachel, what does it add to your marketers who want to spend time on these companies? Yeah, the announcement that Mattel made around what they call Mehta Gen video is pretty big because the number one barrier to advertising is creative and the fastest growing ad platforms are ones that are centered around short form video. So the fact that they're now going to create solutions that democratize video creation, it should boon to them to get more ad dollars, not just from big Fortune 1000 brands, but really all of the SMB businesses. And that's the long tail of advertising that's really going to propel method's growth forward, but go into this visual that we see now. Impressions, commerce impressions. You're saying basically matter is driving two thirds of social traffic on Mac. So it's already a winning formula from your perspective. It absolutely is. But to put this slide into context, between 2023 and 2024, we've seen a 10% growth in brand traffic in Meta.

We've seen a 190% growth in brand traffic and TikTok. So if Meta wants to continue to have this huge lead in front of platforms like TikTok and Google, it needs to continue to make investments in their platform. They cannot rest on their laurels. And that's why I'm personally very proud of Meta for recognizing that they need to make deep advancements in AI to continue to lower the barrier to entry for advertisers. Rachel, let's go back to Meta and that news for a minute because you understand the importance of technology from the advertiser's perspective, right? The basics of it are this new feature can turn a static image into a video ad. Simple. But I think Meta is starting to get a lot of credit for the real-world progress it's making in AI. Just your reaction to that basic idea and what you think it will do to move the path forward for advertisers. Yeah, absolutely. So at.

To put this into context, advertisers can spend somewhere between 10% of their overall marketing investments on creative. But that's just in the cost of creative. The amount of hours that go into creating a video, approving a video up and down the totem pole, that's several people's jobs within an organization. So a simple solution like this might seem obvious and small, but it actually can change marketing and advertising as we know it. It also could create a rippling effect in terms of headcount. You might need fewer marketers with tools like this. So it's a really big deal in the advertising industry. The flip side is for Fortune 1000 brands when it comes to being creative, they do have two major concerns. Number one is copyright violation. And number two is data privacy. So there is a difference. When you talk to a marketer that's running a business that's doing $50 million revenue versus when you talk to a marketer that's running a business, doing $1,000,000,000 in revenue.

So, Matt is going to have some work to do with the major advertisers to assuage concerns around copyright and data privacy. I think we've got to move on a little bit to Amazon's Prime Day. I know that at home, Prime Day is going to be big. So, I've got a few things I've got to get for other people. Let's be honest, it's completely insane. Why is Amazon Prime Day window important for you in your platform? Yeah, absolutely. So, Amazon Prime Day has now become a tentpole moment, not just within the U.S., but globally. It's a day to really move a lot of excess supply and bring value to consumers in 2024. This is really important. On any given day at McMath this year, we've seen a 20% decline in basket sizes. You've now seen this play out in public earnings of mass consumer product companies. Volume sales are down.

Why? Because the last few years, major mass consumer product companies have taken price hikes, and now consumers are fighting back with their wallets. What Amazon Prime Day is going to show us today and tomorrow is how willing consumers are going to spend during this year's holiday season. There's been inflation, there's been price hikes. But on the other side of the equation, the Fed dropping interest rates and hopefully doing that again in November and December brings optimism to consumers.

Meta Adds AI Advertising Video Features

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Bloomberg Technology

Mattel's new Mehta Gen video initiative aims to democratize video creation, attracting ad dollars from SMBs and driving Meta's growth.

Meta is currently responsible for two-thirds of social traffic, but needs to invest in AI and platform advancements to maintain its lead over TikTok and Google.

The new feature that turns static images into video ads is expected to make a significant impact for advertisers, contributing to Meta's real-world progress in AI.

The Impact of Creative Tools on Advertising

Advertisers spend a significant portion of their marketing budget on creative work, and tools that streamline the process could disrupt the industry and reduce the need for marketers.

Fortune 1000 brands have major concerns about copyright violation and data privacy when it comes to creativity.

Amazon's Prime Day has become a global tentpole moment, highlighting the importance of moving excess supply and providing value to consumers, amidst a decline in basket sizes and volume sales for mass consumer product companies.

Major consumer product companies have raised prices in recent years, leading to a backlash from consumers.

Amazon Prime Day is expected to reveal consumer spending willingness for the upcoming holiday season.

The Federal Reserve's interest rate drops are providing optimism to consumers amidst inflation and price hikes.